BTC price analysis, 05.17.2022

BTC-USDT, daily chart

Price action: another BTC crash occured in the past week. Price broke the last support of 29k, falling to lesser than 27k. Now BTC is again on 30k, but it is consistenly rejected by EMA 7. The break of the monthly support states the beginning of bear market, althoug there could be a little reprise to the 38k, where EMA 50 passes: on higher timeframes there are some indications for this move, on daily only the wide shadow of the 27k candle could be the only bullish sign.

Volume analysis: volumes are clearly bearish, green candles are lower than red candles, especially the ones after the rebounce (that could be a bearish retest).

BTC-USDT, weekly chart

On this timeframe there is a clear view of the trend: between 30k and 20k there is no support, only the EMA 200, where price rebounced. Volume candle is similar to the one of the great dump of May 2021. It is crucial for the price to be above the 28k, where a lot of candles made a big shadow in the past months. Another consideration could be taken on the RSI indicator: we can see how RSI is forming lower highs from the beginning of 2021. Following that trendline, it can be expected a relief bounce until that RSI hits again the trendline, that could be approximately at 38k where also EMA 50 could pass. After that, another bear flag could start.

BTC-USDT, monthly chart

Another (temporary) bullish sign could be seen on the monthly TF: RSI hit the same hypersold level of the capitulation occurred at the beginning of 2019. From this level price could bounce and, as said before, fall again between 25k and 30k. It could be a good idea to take a short coverage when price hits again new local highs.